Kiritsis & Associates


What is a title insurance binder?  Kiritsis Law Group 212 922 0005

May 13, 2021

By: John Kiritsis, Esq., CPA, MBA, MS, JD, LL.M

Generally, it is a title insurance company’s written commitment to insure title to the property subject to the conditions and exclusions shown shown on the binder. Many times, a title binder would help provide the buyer and seller, with limited protection during the closing period, where the buyer and seller’s insurance policies may not overlap. Sometimes, such sets of documents, are important to the proverbial flipper (a real estate investor, who will not hold onto the property for too long, after the closing). It is important to remember that a title binder is not title insurance, and it is usually good for a specified limited duration. Another, potential function of a title insurance binder, is that it allows a prospective lender (i.e. bank) some time to conduct the due diligence, without being pressured to conduct the due diligence in a haste. Depending, on the jurisdiction and local customs, it may be that the lender is the one who basically helps selects the title company. It may very based on jurisdiction, but the issuance of a title insurance binder is often a positive sign from the lender’s perspective.


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